BLOOMINGTON, Minn.--(BUSINESS WIRE)--May 21, 1999--XOX Corporation (OTC:XOXCU)(OTC:XOXC)(OTC:XOXCW), specializing in advanced 3-D geometric software, today announced first-quarter results of net income per share of $.05 on revenues of $558,845 for the three months ended March 31, 1999. This compares to a net loss per share of $.03 for the quarter ending March 31, 1998. Net revenues for the quarter ended March 31, 1999 increased 71% to $558,845 from the net revenues of $326,689 realized for the same quarter in 1998. Operating expenses for quarter ending March 31, 1999 decreased by 14% over same quarter in 1998. XOX Corporation (the "Company" or "XOX" (pronounced zocks)) designs, develops, and markets proprietary software for creating virtual mock-ups or models within the computer that capture the complete geometry of objects or spatial areas of interest. This model can then be used for visual analysis or to simulate physical phenomena in a diverse set of disciplines ranging from geosciences to medical applications. Uses of geometric computing software include, but are not limited to, Geophysical software (such as oil-field modeling), Computer Aided Design ("CAD"), Computer Aided Engineering ("CAE"), Geographical Information Systems ("GIS"), Medical Image Processing, Industrial and Graphics Arts Design, Animation as well as Scientific Visualization and Analysis. For more information, visit XOX's website at http://www.xox.com. PART 1 FINANCIAL INFORMATION Item 1. Financial Statements For the Three Months Ended XOX Corporation March 31, Statement of Operations 1999 1998 U.S. Dollars Unaudited Unaudited -------------- ------------- Net revenues Customer support and consulting $183,845 $324,989 Product revenues 0 0 Royalties 375,000 1,700 -------------- ------------- 558,845 326,689 Operating expenses Research and development 222,296 256,222 Selling, general and administrative 189,363 220,292 -------------- ------------- 411,659 476,514 Loss from operations 147,186 (149,825) Interest income 13,236 7,685 Interest expense (7,790) (9,827) Miscellanous (2,020) 4,392 Gain on Debt Repayment 0 12,974 Share of joint venture net (loss)/gain 0 32,249 -------------- ------------- Net income (loss) $150,612 ($102,352) ============== ============= Net loss per share 0.05 (0.03) Weighted average number of shares outstanding 3,072,901 3,055,426  